Overtime

Federal Court Strikes Down Overtime Rule 

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On Nov. 15, 2024, the U.S. District Court for the Eastern District of Texas court decision vacated employers from having to comply with an increase in the salary threshold for white-collar employee exemptions [defined as executive, administrative and professional employees – EAP ] from overtime. This threshold had been set to rise to $58,656 annually as of Jan. 1, 2025—the previous July 1, 2024, increase of the salary threshold from $35,568 to $43,880 per year […]

New Federal Overtime Rule Challenged 

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You might have read Cardinal’s recent Employer Alert (https://cardinalservices.com/new-federal-overtime-rule/) that the U.S. Department of Labor [DOL] is changing the minimum salary thresholds for ​employees that are exempt from overtime​. The published deadlines for the change in salary thresholds are as follows:    July 1, 2024:   The salary threshold increases from $684 per week [$35,568 per year) to $844 per week [$43,888 per year).   January 1, 2025:   The salary threshold increases to $1,128 per week [$58,656 […]

New Federal Overtime Rule

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Department of Labor Increases Salary Requirements for White-Collar & HCE Exemptions  Implementation Deadlines: First phase on July 1, 2024 | Second phase on January 1, 2025    The U.S. Department of Labor [DOL] announced the Final Rule: Restoring and Extending Overtime Protections. The final rule amends the Fair Labor Standards Act regulations by increasing the salary threshold required for executive, administrative, and professional exemptions [referred to as white-collar exemptions). The final rule does not make […]

Ask HR: Does working four 10-hour shifts require overtime pay?

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Dear HR, Did Oregon’s manufacturing overtime rule change this year? I thought I saw a change last year for manufacturing that required both daily and weekly overtime. My question is—would four 10-hour shifts per week require any overtime pay?   HR Answer: The previous interpretation of the law by BOLI required the payment of overtime to manufacturing employees for BOTH daily and weekly overtime hours worked. Effective in August 2017, manufacturing employers should calculate overtime […]

Ask HR: Can I deny OT for lack of work done?

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Dear HR: Can I deny paying overtime if there’s no evidence of work being done?   HR Answer: No, overtime must be paid even if it hasn’t been authorized in advance. You can discipline employees that violate your policy by working overtime without required authorization. You can also discipline your employee for poor performance based on the (lack of) quantity or quality of work accomplished. However, wage and hour laws require that you compensate the […]

ALERT! BOLI Changes in Overtime Payment Laws

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BOLI Changes Manufacturing Overtime Laws Retro-Effective on January 1, 2017   Overtime now must be calculated daily AND weekly starting January 1st. Mills, factories and manufacturing businesses are liable for a daily overtime requirement: in addition to the normal over 40 hours per week pay requirements that apply to other business types, manufacturing businesses are required to pay 1.5 times’ the employee’s regular rate of pay for hours that exceed 10 hours in a single […]

Ask HR: Can I shift workweeks to reduce overtime?

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Dear HR:  We are busy, and are exploring the addition of one or possibly two shifts. We currently have a Sunday through Saturday work week, and have employees going into overtime sometimes as early as Thursday. We are wondering about having multiple work weeks with the intent of reducing overtime.   HR Answer:  There does not appear to be any wiggle room under State and Federal wage laws as far as tweaking work weeks or […]

Ask HR: Do I have to pay unapproved overtime?

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Dear HR: My employee is scheduled to work eight hours per shift. They are clocking in early and staying late all the time causing several over time hours per week. Can I just pay them for the eight hours they were scheduled for each shift?   HR Answer: Under Federal and Oregon wage laws, employers are required to pay employees for all work that is ‘suffered or permitted’ to work. Even if you did not […]

New Overtime Exemption Rules

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As expected, the United States Department of Labor has made changes to the salary threshold used to determine if an employee is exempt from overtime.  Summary of all changes Previously the minimum threshold was $455 per week. This minimum has jumped to $913 per week or $47,476 per year. There were other proposed rule changes discussed but there were no other major changes except for a mechanism to review salary thresholds every three years.